During a recent gathering to mark the release of the 2010 White Charter of small- and medium-sized enterprises (SMEs), Romania’s Prime Minister Emil Boc outlined progress realized so far for the country’s business environment, and what goals have yet to be achieved, referring to specific tax measures designed to support companies.

Noting that SMEs are the engine of any market economy, and constitute two thirds of Romania’s gross domestic product (GDP), Boc underlined the need to extend to these companies support during difficult times. Companies experiencing difficulties as a result of the economic crisis may currently benefit from the measure provided for by ordinance 92/2009, Boc explained, granting struggling businesses deferred payment of their tax obligations. The provision exempting reinvested profit from taxation is further maintained, the Prime Minister continued.

Regarding other tax measures designed to support SMEs in Romania, Boc drew attention to the fact that the government has so far either reduced or abolished 215 taxes, and aims to remove further tax measures in the future. Emphasizing that the 16% flat tax remains a fundamental objective of the government, Boc confirmed the government’s intention to maintain this tax, which is “a sign of stability and coherence of economic activity and support of the business environment”.

Underlining the need to increase the value-added tax rate in the face of harsh realities in order to maintain budgetary balance and to ensure the financing of the country’s budgetary deficit, Boc also confirmed that as of this autumn, the government aims to abolish the minimum tax.

The White Charter of SMEs in Romania offers a thorough analysis of the past and present situation of the Romanian SME sector.